All lawyers must understand climate law, and young ones must lead: Top 25 Most Influential winner
Climate change is no longer just an environmental law issue – it is set to reshape nearly every area of law, says Carol Liao, a corporate law scholar at the University of British Columbia and an advocate for sustainable business.
Named one of the Top 25 Most Influential Lawyers in 2024, Liao is a former senior associate in the New York M&A group at Shearman & Sterling LLP (now A&O Shearman) and currently serves as chair of the Canada Climate Law Initiative.
She spoke with Canadian Lawyer about how climate change transforms the legal profession, and the challenges young lawyers will face. Nominations for the 2025 Top 25 Most Influential Lawyers open on March 24.
Climate change is no longer just an environmental law issue, Liao says.
It is affecting corporate governance, risk management, financial regulations, insurance, real estate, and litigation, which is why every lawyer will soon need to understand climate law, she adds.
“Eventually, all lawyers will need to be climate lawyers… In the business sector, it's well understood that climate change is a material business risk… We're seeing a rapid implementation of climate disclosure requirements, litigation risk, reputational risk, and I think for lawyers, the truth is that our hands are on every element of this transition,” she says.
Liao says that with Canada warming at twice the global average and its greenhouse gas (GHG) emissions per capita among the highest in the world, the legal system is already grappling with financial risks.
“As a country, we’re not doing our share.”
She criticizes the idea that Canada needs a legal structure like that of the US, arguing that Canadian corporate law already allows businesses to prioritize sustainability.
Unlike in the US, where companies may need to differentiate themselves through discretionary corporate social responsibility initiatives, she says Canadian corporations are already expected to act as responsible corporate citizens within existing legal and regulatory structures.
“To say that we need a specific type of responsible organization, we would be permeating a message that, without a legal structure, you are obligated to pursue profit above all else in the corporation, which is just simply not the law in Canada. It’s totally inaccurate.”
As businesses face increasing pressure to market themselves as environmentally responsible, the legal profession is seeing a surge in climate litigation, particularly around greenwashing – when companies falsely claim to be environmentally friendly, Liao says.
“Greenwashing is a major issue. When you look at climate and human rights litigation over the past few decades, it’s almost a hockey stick – especially recently, because of greenwashing litigation.”
In Canada, Bill C-59 was introduced to combat greenwashing by strengthening consumer protection laws. Liao says the legislation caused a wave of corporate panic, with many companies immediately removing or revising their environmental claims from websites and marketing materials.
“Interestingly, when that legislation landed, many companies pulled statements they had on their web immediately because they weren’t clear how to deal with the risk in that sense.”
While some organizations have adopted voluntary environmental, social, and governance (ESG) disclosures, Liao says mandatory standards are critical to ensuring accountability.
“It’s about strengthening the market, addressing investor demand for greater information, and it’s an access-to-capital issue as well.”
Liao says that navigating this shifting legal terrain will require adaptability, resilience, and a willingness to challenge old systems for law students and young lawyers.
“You’ve been handed a massive challenge, and I’m sorry for that.”
Despite the daunting circumstances, she sees an opportunity for young lawyers willing to lead.
“We are in an unprecedented time – the rules are changing, and that means young lawyers don’t have to play by the old ones. They have power as a collective, and they should use it to push for change now,” she says.
Her most significant piece of advice? Stay engaged, stay informed, and don’t get discouraged.
“You have a voice. Use it. Don’t wait until you have the traditional aspects of what is regarded as power. You don’t need it. As a collective, you can speak now. You actually need to if you want to make us older generations wake up.”
She urges young lawyers to recognize the urgency of their role in shaping a sustainable legal profession.
“This is an all-hands-on-deck moment. The legal profession is being reshaped, and those who step forward now will help define its future. Don’t give up. The world needs you.”
